What is the Difference Between Management and Administration?

Management and administration are often used interchangeably. To understand the difference between administration and management, you must know these two are not synonyms. The two terms are different regarding functions but have the same objective. Management is the implementation of policies that are created through effective administration. To ensure proper administration, each process must be managed at each level. Read the blog below to learn more about the difference between management and administration.

 

Management refers to a broader terminology that indicates several functions. These including planning, staffing, organizing, monitoring, supervising and leading. On the other hand, administration is an action which involves the implementation of rules, regulations and policies set by the management.

These terms are closely related but represent different responsibilities. Management is linked with higher-level positions in comparison with administration. In management, strategic-thinking, decision making and leadership are must-have skills. For administration, one must have skills such as organization, communication and attention to details.

Table of Contents

• Administration vs Management
• What is management?
• Need for management
• What is administration?
• Need for administration
• Difference Between Management and Administration As Roles in Companies
• What is the Difference Between Management and Administration: Category-Based

Management vs Administration: What is the Difference Between Management and Administration?

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Detailed Difference Between Administration and Management

Following are the differences between administration and management.

1. Management is the process of managing people at every level, from an individual to a team. It is done at the micro and macro levels. Within each level of the hierarchy, managers work to ensure a smooth workflow. On the other hand, administration is at an upper level, where high-level authorities are involved. This is done on a macro level.
2. Administration represents creating plans and actions to achieve the objectives of the company. Management is the process of implementing these plans to reach the final goal.
3. Administrative functions are legislative, whereas managerial functions are executive. 
4. In administration, decisions are made regarding the people involved in accomplishing a set of tasks. This means that administrators decide which professionals are appropriate for a particular objective. On the other hand, management involves making decisions on actionable items to help achieve that goal.  

Let us take a look at the summary to understand the differences between administration and management:

What is Management?

Management deals with managing people and their work to achieve a common goal. It is a process required at every level of the organization. The aim is to streamline processes, workflow, goals, and objectives. It also helps achieve the maximum result. 

Managers supervise the entire management process. They perform duties to manage processes properly, ensuring every process, team, and workflow syncs with changing economic, technological, and socio-political conditions. 

Management takes place in four phases. 

1. Planning

• The manager sets clear objectives.
• Strategies are developed to achieve these objectives.
• This phase sets the direction for the team and the project.

2. Organizing

• The manager builds a team with the required skills.
• Internal processes and structures are put in place.
• Resources are arranged to support the execution of the plan.

3. Leading (or Directing)

• The manager guides and motivates the team.
• Leaders use their leadership skills to ensure that the team works effectively.
• Communication and coordination are key at this stage.

4. Controlling (or Monitoring)

• The manager tracks progress and performance.
• Any deviations from the plan are corrected to ensure that the business objectives are achieved as intended.

Need for Management

For any organization, management is essential for the following reasons:

1. Timely delivery: For timely delivery, it is essential that processes, production, and output are on time. For this, proper supervision is important since it can help prevent lags and unwanted disruptions. Once things are properly managed, delivery of services and products is always on or before time.
2. Less wastage: With a better-managed system, there is an exact idea of the requirements and how to accomplish tasks efficiently. This prevents the use of extra raw materials, resources, or funds. 
3. Decision-Making: Proper management leads to better business decisions. Since everything is aligned, you have clarity about making choices that benefit the business.
4. Achieving goals: If things are well managed at a functional level, the probability of success is higher. This allows you to achieve goals within time and budget.
5. Profits: A managed business organization can produce quality products and services within budget and time, helping the company earn more profits.  

What is Administration?

Administration is a subset of management, a systematic process of administering management. It involves building plans, procedures, and policies and enforcing rules to achieve goals. Administration sets up a framework for organizations on a fundamental level. More precisely, it involves authorities like bureaucrats. The administration process involves top-level management. Administrators deal with the processes to ensure proper administration. 

Need for Administration

Proper administration is required to achieve the objectives of any organisation, whether it is a profit-making organization or an NGO. 

1. Improves efficiency: Proper administration ensures that resources are being utilized in an optimum manner. Less time is consumed performing tasks, which increases efficiency and optimization within the workflow. 
2. Increases Productivity: As soon as the system becomes more efficient, the team can generate more than before when efficiency was lower. This makes the team more productive and improves operations.
3. Fewer errors: Appropriate administration ensures proper supervision, which reduces the team's mistakes and makes the system less prone to errors.

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Difference Between Administration and Management As Roles in Companies

One of the crucial differences between management and administration lies in their significance within the company. Let us understand this in detail:

Management: Macroscopic Approach

Those who are responsible for the management of company operations do the following:

• Management professionals are involved in planning the company's vision and long-term goals. During the planning process, budgeting for projects or hiring employees is also done. The objective is to achieve the company's long-term goal.  
• Those who manage processes and operations within the company also organize, optimise, and allocate resources. 
• Management also involves effectively leading employees. Strong management can help a company and its employees progress faster toward achieving their long-term goals.

Administration: Microscopic Approach

Within a company, administration involves the following tasks:

• Administration includes supervision of daily operations to ensure that the company functions smoothly. 
• Day-to-day requirements within a business are administered to ensure that processes are not hindered.

• Administration is responsible for enforcing company policies and rules, as well as ensuring that procedures are followed.

What is the difference Between Management and Administration: Category-Based

The difference between management and administration can be further explained within the following two categories: 

1. Functions of management and administration
2. Usage of administration and management 

1. What is the Difference Between Management and Administration Based on Functions?

Based on functions, the difference between management and administration is as follows:

Management

1. Management focuses on setting long-term organisational goals, developing strategies for achieving these goals, and creating approaches to tackle business challenges. It is responsible for deciding in what direction the business will move ahead and accordingly building strategies to make a profit.
2. Managers must make business-relevant decisions related to organizational performance, resource allocation and human resource utilization. 
3. Management has to guide team members, build a positive work environment and motivate employees to accomplish tasks.
4. Another management responsibility is monitoring the team's performance both overall and individually. Management needs to set performance metrics, provide feedback, and implement performance strategies. They also have to ensure that organizational goals are accomplished.

Administration

1. The focus of administration is on maintaining an organization's day-to-day operations. Administrative professionals ensure that organizational processes run smoothly. They coordinate with different departments and ensure that workflow systems are being efficiently maintained.
2. Administrators develop, implement, and enforce organizational policies and procedures. Their aim is to ensure that the organization operates within the established guidelines, regulatory requirements, and internal standards.
3. The administration manages organizational resources, such as financial and human resources and physical assets. The administration department handles tasks such as resource allocation, budgeting, and maintaining organizational infrastructure.
4. Administration manages different communication channels, maintains official records, handles correspondence and ensures that organizational activities are properly documented. 

2. What is the Difference Between Administration and Management Based on Usage?

Management:

• Management is conducted within the higher-level organizational system for the decision-making process. It is more commonly prevalent in corporate and private work cultures. The emphasis is on strategic planning, organizational growth, and creating and implementing better strategies.
• Managers require skills related to strategy and leadership, financial analysis, problem-solving, and negotiation.

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Administration:

• Administration is conducted in low—to middle-level organizational structures. It is more prevalent in government, educational, and public-sector institutions. The aim is to maintain established systems and processes while following existing protocols.
• Those who are involved in administration require strong organizational, business communication, process management and documentation skills. 

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Conclusion

Both management and administration are crucial for achieving the final goal. These two go hand in hand since administration and management are incomplete without the other. If the system has poor administration, weak policies and procedures will be created. This will lead to poor decisions that will adversely impact everyone from higher to lower levels. In the end, managers will have no clue what path to take to achieve the end goal.

On the other hand, if the administration is strong but management is weak, it will also cripple the system. Even if the policies are effective, their implementation will be poor due to weak management. This will hamper the workflow, efficiency, and productivity of a group of people in the company. I hope that this article has helped you understand the difference between management and administration in detail.

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